With so many different insurance products available, it can be hard to understand the difference between some. For example, accidental death and life insurance sound like very similar offerings. However, these are two significantly different products and one may be far more suitable for you than the other.
Here, we take a look at the key differences between accidental death and life insurance and which one may be best for you.
What is accidental death insurance?
Accidental death insurance is a policy designed to cover expenses for your family if you were to die unexpectedly due to an unforeseeable accident. Where your death comes due to no fault of your own, your loved ones will receive a pay-out to support them financially in the wake of your passing.
It's also worth highlighting that many accidental death policies require that the death is the direct result of an accident and occurs within a specific time limit. Here are two examples of how these rules might apply:It is important to understand that accidental death insurance will not provide for your family if your death is judged to have been reasonably preventable. For example, if you were to pass away due to injuries or illness sustained during the course of illegal or criminal activity, or as a result of suicide, your cover won't apply.
- Experiencing a stroke while driving may cause you to sustain severe injuries if you crash. However, only if your death is the result of the injuries sustained, not the stroke, will your insurance apply.
- If you survive an accident but later die due to injuries sustained, you only be covered if less time has passed after the incident than is specified in your policy.
What is life insurance?
Life insurance is a broader product, offering cover in the event of your passing due to any reason.
Causes of death that are often included under life insurance, but not accidental death, are terminal illnesses or diseases, drug overdose, drunken driving by the insured and suicide following an introductory period.
Just like accidental death insurance, life cover will give financial compensation to your chosen loved ones.
What are the key differences?
There are two particularly important differences between life and accidental death insurance.
The first is the extent of coverage. As outlined above, accidental death policies will only compensate following the decease of the insured if it can be directly linked to an accident, meanwhile life insurance encompasses a much wider range of causes.
The second, is cost. While life insurance may seem like the more appealing option, many people may be unable to afford the premiums required to insure against such a huge selection of events. That's why we offer accidental death insurance, which we believe is more affordable and relevant to this nation's people.
Many Papua New Guineans rely on the support of family and tribes through the wantok system, however when a sudden passing occurs during an already trying time, the resources needed to transport your body for funeral processions simply may be unavailable. Insuring yourself against accidental death means that your loved ones will be able to give you the farewell and burial you deserve.
Where can I get accidental death insurance?
At Trans Pacific Assurance, we underwrite a wide variety of different insurance policies. Included in our offerings are home and contents, medical, business and accidental death insurance. To find out more about securing cover for accidental death, please get in touch with the Trans Pacific team through our contact page or via email to email@example.com today.